Certificates of Deposit With Guaranteed Fixed Returns
For members who want predictable growth without exposing their savings to stock market volatility, Certificates of Deposit from Servus Credit Union offer a compelling solution. A CD locks in a fixed annual percentage yield for a specific term — six months, twelve months, two years, three years, four years, or five years. The rate never changes during that period, regardless of what happens in the broader interest rate environment. This predictability makes CDs a cornerstone of conservative portfolio strategies and a reliable vehicle for savings goals with known time horizons.
CDs at Servus Credit Union operate on a simple premise: you agree to leave a deposit in place for a set period, and the credit union agrees to pay a fixed rate that is typically higher than what a standard savings account offers. The longer the term, the higher the rate — reflecting the credit union's ability to deploy those funds in longer-term lending. Unlike savings accounts where the rate can change at any time, a CD's rate is contractually locked from the day the account is opened until the maturity date. This protects the depositor against rate declines while also meaning that if rates rise, the locked CD will not capture those increases until it matures and can be reinvested.
The minimum deposit required to open a CD at Servus Credit Union is one thousand dollars. There is no maximum limit, though deposits exceeding two hundred and fifty thousand dollars may exceed NCUA insurance coverage and should be discussed with a member services representative to structure proper coverage. CDs can be opened as individual accounts, joint accounts with another person, or as part of a trust or IRA. Each ownership category receives separate insurance coverage, so a member could theoretically protect significantly more than two hundred and fifty thousand dollars across multiple CD structures within the same credit union.
Breaking It Down
CD rates at Servus Credit Union are set based on the term length and the current cost of funds. As of this writing, a 6-month CD earns a lower rate than a 12-month CD, and a 60-month CD earns the highest rate in the lineup. The incremental increase between terms is not always linear — some term lengths offer particularly compelling rate jumps that make them strategic choices in a CD laddering strategy. All rates are fixed at account opening and never change during the CD term, regardless of market movements. The credit union publishes current CD rates on its website, and members can lock a rate immediately when they open the CD online or in a branch.
CD Rates by Term Length
The table below shows current annual percentage yields for Certificates of Deposit at Servus Credit Union. Rates are subject to change and may vary from what is displayed here. The actual rate available at the time of account opening will be confirmed before the CD is funded.
| Term | Annual Percentage Yield | Minimum Deposit | Early Withdrawal Penalty | Best For |
|---|---|---|---|---|
| 6 months | 2.50% APY | $1,000 | 90 days of interest | Short-term cash reserves |
| 12 months | 3.25% APY | $1,000 | 90 days of interest | One-year savings goals |
| 24 months | 3.75% APY | $1,000 | 180 days of interest | Intermediate savings targets |
| 36 months | 4.00% APY | $1,000 | 180 days of interest | CD ladder building block |
| 48 months | 4.15% APY | $1,000 | 180 days of interest | Higher rate with medium commitment |
| 60 months | 4.35% APY | $1,000 | 180 days of interest | Maximum fixed-rate growth |
Rates displayed are accurate as of the date of publication and are subject to change without notice. The annual percentage yield assumes that interest remains in the CD and compounds on the schedule specified in the account agreement. Contact Servus Credit Union for current rate information before opening a new CD.
Building a CD Ladder With Servus Credit Union
CD laddering is a strategy that balances the higher rates of long-term CDs with the liquidity of short-term maturities. Instead of putting all of your deposit into a single CD with one maturity date, you divide the total across multiple CDs with staggered terms. A typical ladder might use five equal deposits distributed across 12-month, 24-month, 36-month, 48-month, and 60-month CDs. When the 12-month CD matures after one year, you reinvest that principal and interest into a new 60-month CD. The following year, the original 24-month CD matures and is also rolled into a 60-month CD, and so on.
After the initial five-year setup period, every CD in the ladder carries the 60-month rate, and one-fifth of the total deposit becomes available each year. The ladder never fully locks up all of the money at once, and the weighted average rate across the portfolio consistently approaches the highest available rate. Servus Credit Union offers automatic rollover options that simplify ladder management. When a CD matures, it automatically renews into a new CD of the same term unless the member specifies otherwise. Members can change the rollover instructions at any time before the maturity date by visiting a branch or contacting member services.
The credit union sends a maturity notice approximately thirty days before each CD's end date, giving members time to decide whether to withdraw the funds, roll them into a new CD, or adjust their ladder strategy based on current rate offerings. CD statements are issued quarterly and show the current balance, accrued interest, annual percentage yield, and maturity date. Members who prefer to track everything digitally can view all of their CD details alongside their checking and savings accounts in the online banking dashboard.
"Opening a CD with Servus was straightforward — no hidden terms, no pressure to add products I did not need. The rate was better than what the online banks were advertising, and I liked having a local branch to ask questions." Daniel Park, Software Developer, San Jose CA — Member since 2022
Understanding Early Withdrawal and Renewal Terms
Life is unpredictable, and although CDs are designed to be held to maturity, Servus Credit Union recognizes that circumstances change. Early withdrawal is permitted on all CD products, subject to a penalty that is clearly disclosed at the time the account is opened. For CDs with terms of twelve months or less, the penalty equals ninety days of interest at the CD's stated rate. For CDs with terms longer than twelve months, the penalty equals one hundred eighty days of interest. If the accrued interest on the CD is less than the penalty amount, the difference is deducted from the principal. Members should factor this penalty structure into their decision before committing to a long-term CD with funds they may need to access in an emergency.
At maturity, CD holders have a ten-day grace period during which they can withdraw the full principal and accrued interest without penalty or renew the CD at the then-current rate. If no action is taken, the CD is automatically renewed into a new CD of the same term at the rate being offered on that day for new accounts. Members who prefer not to have their CD auto-renew can change this setting at any time before the maturity date by updating their instructions through member services or in a branch. The grace period provides a window to shop rates at other institutions without incurring early withdrawal penalties if a better option is identified.
Frequently Asked Questions About Certificates of Deposit
- What CD terms does Servus Credit Union offer?
- Servus Credit Union offers Certificates of Deposit in six standard term lengths: 6 months, 12 months, 24 months, 36 months, 48 months, and 60 months. Shorter terms of 6 and 12 months offer lower fixed rates in exchange for greater liquidity — the member's money is tied up for a shorter period and the early withdrawal penalty is smaller. Longer terms of 36, 48, and 60 months offer progressively higher fixed rates, rewarding members who are willing to commit their deposit for a longer duration. Each CD has a minimum deposit requirement of one thousand dollars. IRA CDs are also available within the same term structure for members who want to hold retirement savings in a fixed-rate vehicle.
- What is the early withdrawal penalty on a Servus Credit Union CD?
- Early withdrawal penalties at Servus Credit Union are structured by term length and are explained in full at the time of account opening. For CDs with terms of 12 months or less, the penalty is 90 days of simple interest at the CD's stated rate. For CDs with terms exceeding 12 months, the penalty is 180 days of simple interest. If the accrued interest on the CD is less than the penalty amount — which can happen if the CD was opened recently — the remainder of the penalty is deducted from the CD's principal balance. There are no early withdrawal penalties on CDs that are closed within the ten-day grace period following maturity, and the credit union may waive the penalty in the event of the account holder's death or a court-determined mental incapacity with proper documentation.
- How does CD laddering work at Servus Credit Union?
- CD laddering at Servus Credit Union works by dividing a total deposit amount across multiple CDs with different maturity dates. As a practical example, a member with twenty-five thousand dollars to invest might place five thousand dollars into each of five CDs: a 12-month, a 24-month, a 36-month, a 48-month, and a 60-month CD. After twelve months, the first CD matures, and the member reinvests that five thousand dollars into a new 60-month CD. The process repeats each year as each successive CD matures. After five years, every CD in the ladder earns the 60-month rate, and one-fifth of the total becomes available each year without incurring early withdrawal penalties. Servus Credit Union supports this strategy with automatic rollover options and online management tools.
- Are Servus Credit Union CDs federally insured?
- Yes. Certificates of Deposit at Servus Credit Union are federally insured by the National Credit Union Administration, an agency of the federal government, up to two hundred and fifty thousand dollars per depositor per credit union. This insurance covers both the principal amount deposited and any accrued interest. Members who hold deposits exceeding this limit can structure their CD holdings across multiple ownership categories — individual accounts, joint accounts with a spouse or family member, payable-on-death accounts with named beneficiaries, and trust accounts — each of which is separately insured up to the two hundred and fifty thousand dollar limit. The NCUA's Share Insurance Estimator tool at ncua.gov can help members calculate their total coverage across different account structures.
Member-First Thinking
CDs are often compared to savings accounts, but they serve a fundamentally different purpose. A savings account provides immediate access to funds with a variable interest rate that can change at any time. A CD provides a fixed rate that is contractually guaranteed but requires the depositor to forgo access during the term or pay a penalty to get the money out early. The choice between the two depends on the member's timeline and risk tolerance. For money that will definitely be needed within six months — such as a down payment on a house that is under contract — a savings account or money market account is the appropriate vehicle. For money that can remain untouched for a year or longer, a CD will almost always produce a higher return.
Servus Credit Union also offers add-on CDs, a less common product that allows members to make additional deposits to the CD after the initial opening. Standard CDs are single-deposit accounts — you put money in once at the beginning and the balance remains fixed until maturity. Add-on CDs accept additional contributions throughout the term, which makes them useful for members who are building a savings balance gradually and want to lock in CD rates as they go. The add-on feature is available on select term lengths and requires a minimum initial deposit of five hundred dollars with subsequent deposits of at least one hundred dollars each.
Open a Certificate of Deposit Today
Lock in a fixed rate for your savings with a CD from Servus Credit Union. Terms from 6 to 60 months with a minimum of just one thousand dollars.
Open a CDFor official regulatory information about deposit insurance and consumer financial protection, visit ncua.gov and consumerfinance.gov. Financial education resources are available through University of Minnesota Extension.